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Changpeng “CZ” Zhao, the billionaire founder of Binance, says initial public offerings (IPOs) could eventually move onto blockchain infrastructure, a shift that could change how companies issue shares and how investors access new listings.
Blockchain-based IPOs could potentially make parts of the process more transparent, automated, and accessible, although significant regulatory and infrastructure hurdles would need to be addressed. Zhao gave no timeline or implementation plan, making the statement a prediction rather than a Binance announcement.
Zhao Says IPOs Will Move On-chain
Zhao made the prediction in an X post on Sept. 8 as financial firms continue experimenting with blockchain-based securities infrastructure. He wrote: “IPOs will move on chain.”
The post did not explain whether Zhao expects the entire IPO process to operate on-chain or only functions such as share issuance, ownership records and settlement. He also did not name a blockchain, exchange, or company preparing such an offering.
Securitize and Cantor Build On-chain IPO Infrastructure
Securitize and Cantor Fitzgerald are among the firms developing infrastructure for blockchain-based public offerings. The companies announced an agreement in July to help companies conduct IPOs and follow-on offerings using tokenized securities.
The structure would combine Cantor’s equity capital-markets operations with Securitize’s regulated tokenization infrastructure. Shares could be issued using blockchain technology while remaining within existing securities rules.
That differs from third-party stock tokens that provide exposure to shares without giving holders direct ownership of the underlying stock. An issuer-authorized on-chain IPO could instead use blockchain infrastructure to issue and distribute the securities themselves.
SEC Proposal Addresses Blockchain Share Records
The U.S. Securities and Exchange Commission is also considering rule changes affecting tokenized securities infrastructure. On Sept. 1, the agency proposed modernizing rules for registered transfer agents, which maintain shareholder records and process securities transfers. SEC Chairman Paul Atkins said:
“This proposal would streamline and modernize the Commission’s rules to reflect transfer agents’ current processes and operations, including the use of electronic communications and blockchain technology in connection with securities offerings and the transfer of shares.”
Tokenized Shares Still Face Securities Rules
Moving shares onto a blockchain does not remove securities-law requirements. SEC staff said in January that tokenized securities remain securities even when ownership records are maintained partly or entirely through a crypto network.
The agency also distinguishes issuer-tokenized securities from third-party products, which may not give holders the same ownership or shareholder rights as the underlying shares.
Zhao’s statement therefore points to a possible change in the technology used for public offerings rather than the replacement of existing securities regulation.
